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Check Before You Invest : LGT Global Hospitality Ltd

BSE: 544489 NSE: ISIN: INE191201016
  |   Sector:  Travel & Hospitality   |   Industry:  Travel Services

Snapshot

Q.1 Which industry/sub-sector does LGT Global Hospitality Ltd belong to?
LGT Global Hospitality Ltd belongs to the Travel & Hospitality sector, operating specifically within the Travel Services segment.
Q.2 Is LGT Global Hospitality Ltd a good quality company?
LGT Global Hospitality Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is LGT Global Hospitality Ltd undervalued or overvalued?
LGT Global Hospitality Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 9.59 9.47
Price to Book 1.09 1.21
Price to Sales 0.33 0.48
EV to EBITDA 5.39 5.85
Q.4 Is LGT Global Hospitality Ltd a good buy now?
LGT Global Hospitality Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd revenue growth is 12.4% for FY-2025, which is below its 3-year CAGR of 95.07%, indicating slower growth.

Q.2 Gross Profit margin of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is above its 3-year median of 6.9%, indicating increasing margins.

Q.3 Operating Profit Margin of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.03% for FY-2025, which is above its 3-year median of 7.08% indicating increasing margins.

Q.4 Net Profit Margin of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Net Profit Margin is 5.19% for FY-2025, is above its 3-year median of 4.88%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 7.4 6.9
Operating Profit Margin (%) 8.03 7.08
Net Profit Margin (%) 5.19 4.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Return on Asset is 24.87%, which is below its 3-year historical median of 30.86%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Return on capital employed is 50.13% for FY-2025, which is below its 3-year historical median of 67.53%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Return on equity is 52.99% for FY-2025, which is below its 3-year historical median of 67.02%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Cash conversion cycle is 20 days, above its 3-year historical median of 11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 4.79 7.59
ROE (%) 52.99 67.02
ROCE (%) 50.13 67.53
Cash Conversion Cycle 20 days 11 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Debt-to-Equity ratio is 0.77, which is above the industry average of 0.07, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of LGT Global Hospitality Ltd?
LGT Global Hospitality Ltd Debt to cash flow from operations is 9.51, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of LGT Global Hospitality Ltd?

Q.1 Promoter shareholding and pledge status of LGT Global Hospitality Ltd?
Promoters hold 71.95% of the LGT Global Hospitality Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does LGT Global Hospitality Ltd performance compare with that of its Peers?

Q.1 Revenue growth of LGT Global Hospitality Ltd vs industry peers?
LGT Global Hospitality Ltd revenue CAGR is 95.07%, compared to the industry median CAGR of 52.7%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 12.4 52.7
Gross Profit Growth (%) 42.7 54.2
Operating Profit Growth (%) 45.9 58.4
Net Profit Growth (%) 43.8 75.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 4.79 1.74
ROE (%) 52.99 17.64
ROCE (%) 50.13 23.38
Cash Conversion Cycle (days) 19.74 16

Valuation & price assessment

Q.1 Stock return of LGT Global Hospitality Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of LGT Global Hospitality Ltd vs historical?
The current P/E ratio of 9.59 is in line with than its historical median of 9.47, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 9.59 9.47 39.59
Price to Book 1.09 1.21 2.59
Price to Sales 0.33 0.48 2.14
EV to EBITDA 5.39 5.85 13.25

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